Controversy surrounding celebrity-endorsed prepaid cards threw around words like “unbanked” and “underbanked.” But the real head-scratcher isn't the high-fee cards and their Hollywood affiliations, but why it’s taken so long to recognize the plight of more than 30 million Americans.

1 in 4 American households is considered unbanked or underbanked, reports the FDIC, meaning they have little to no access to basic financial services like a checking or savings account. Unbanked households are often low-income and minority populations and their limited financial access means little to no credit, less savings, greater susceptibility to theft and fraud, and ultimately more financial risk.

While many assume unbanked consumers are unbanked because they cannot access financial services (which is true in some cases), the reality is that a bigger majority of consumers are unbanked because they choose to be.

Key reasons why these households remain unbanked: 37 percent said they don’t have enough money to need an account, 18 percent say they didn't write enough checks to warrant an account, about 13 percent say the minimum balance required is too high, and another 13 percent see no need to have an account.

However, unbanked consumers are an at-risk population because “choosing” to be unbanked has its consequences:

1) Spending $1,200 annually on fees. Alternative financial service (AFS) providers cover the gap left by banks, lenders, and credit card issuers. These services include prepaid debit cards, check-cashing businesses, money order services, pawn shops, cash wire services, payday lenders, car-title loans and other predatory services notorious for exorbitant fees and interest rates as high as 300% annually. According to one estimate, a household with net income of $20,000 may spend as much as $1,200 annually on AFS fees such as for money orders for expenses and to cash payroll checks. Is $1,200 a year in fees a better alternative to a bank checking account?

2) Having fewer savings and more retirement risk. According to the Pew Health Group, having a bank account correlates to savings. In a study of low-income Los Angeles households, 73 percent of banked households deposited their payroll checks in a bank and are likely to save a portion of their checks. Comparatively, 73 percent of unbanked households that receive a payroll check patronize an AFS provider to cash the check with no intent to save. Without a bank savings account, consumers are at risk of having little to no savings on hand as well as long-term into retirement.

3) Being credit-starved. Unbanked consumers have restricted access to credit-building products like credit cards and loans. While Suze Orman’s prepaid card attempts to disrupt the credit industry, prepaid card activity doesn't currently factor into credit reports or credit scores. Going off-the-grid of mainstream financial services means unbanked consumers may never build credit, which is necessary for purchasing a home, getting a small loan and opening other financial doors.

4) Building wealth and financial stability. The key benefit to accessing financial services is financial stability. Unbanked consumers have to rely on alternative financial services with fees that eat away at already stretched paychecks, and without a bank account, families cannot build and protect their wealth in an FDIC-insured place. Many unbanked consumers are low-income households, and without a place to save, living paycheck-to-paycheck becomes a vicious and routine cycle.